PACEY MANUEL COLLEGE
FIRST TERM EXAMINATION
COMMERCE
SS3
SECTION A
Answer all the questions in this section
1. A person authorized to sell the properties of a company in a winding up
is……..(a)auctioneer (b)an agent(c)a liquidator(d)a bailee
2. A document through which an invitation is extended to subscribe to
shared is(a)quotation (b)article of association (c)prospectus (d)
memorandum of association
3. One disadvantage of a sole proprietorship is …….(a) quick decision
making (b) unlimited liability (c)pride of ownership (d) unlimited source
of capital
4. Which of these is a source of short term finance to business
(a)lease(b)debentures(c)overdraft(d)hire purchase
5. The portion of shared capital which the company asked the
shareholder to pay is called ….(a)called up capital (b)authorized capital
(c)unpaid capital (d)paid up capital
6. A business that requires a certificate of trading in order to commence
operations is called (a)public company(b)sole proprietorship (c)private
company (d)cooperative society
7. An agreement between two parties which can be enforced is ………
(a)warranty (b)an offer(c) consideration(d)a contract
8. The process of placing the right people in the right position in a
organization is called……. (a) planning (b)motivating (c) staffing (d)
direction
9. Which of the following is a basic requirements for a valid contract (a)
representation (b) consideration (c)interest(d) performance
10. The law by which the seller transfer the properties and goods to
the buyer at an agreed price(a)hire purchase act(b) trade description
act(c)food and drug act(d)sales of goods act
11. Which of the following is NOT a business resources (a) market
(b)man(c)money(d)machine
12. In law of contract ,a counter offer operates as……..(a)an
acceptance (b)a rejection (c)consensus ad idem (d)a contract
13. The act of combining humans, materials and other resources to
achieve the stated goals of a business is known as(a) organizing (b)
planning (c)directing(d) controlling
14. An agent with authority to bind his principal in everything he
provided acting lawfully is called…..(a)a special agent(b)universal
agent(c)a del credel agent (d)a factor
Use the information to answer question 15-16
Segun presented his motorcycle for sale to Adamu at the cost of
#10,[Link] agreed and bought the vehicle at the same amount.
15. The #10,000 for the sale is ……(a)a consideration (b)an
acceptance (c)an offer(d) a warranty
16. Segun is the……(a)offerer (b) guarantor (c)offeree(d)acceptee
17. When an acceptance to an offer is conditional,the offer
becomes…….(a) valid (b)counter offer (c)accept(d)void
18. ……… is when the injured party sues to reinforce the contract (a)
recession (b)damages((c) consideration (d) justice
19. An agent is a person who is employed by ……… to act on his
behalf (a) contractor (b) principal make(c)Justice(d)partner
20. The party that has suffered loss has the right to sue for (a)
recession (b)damages(c) properties (d) relationship
21. ……….. are commercial agents who link their principal with
potential buyers,they search for buyers and link them with the
principal (a)estoppel (b)jobbers(c)universal agents(d) brokers
22. ……….is a credit agreement in which the customer is allowed to
take possession and ownership of the goods upon the payment of the
initial deposit (a) deferred bus agent(b)hire purchase (c) deferred
payment (d) brokers
23. The concern of a marketing manager whose company has
adopted marketing concept is to (a)recruit more salesmen (b)make
maximum profits(c) identity and satisfy customer’s needs(d) maintain
the company’s shares of the market
24. Interbank indebtedness is settled at the (a) clearing
house(b)money market(c) discount house(d)stock exchange
25. A system of issuing new shares to selected investors instead of
the general public is (a public offer(b)offer for sale(c)private placement
(d)issue by tender
26. The purpose of commercialization is to (a) encourage the
participation of the private sector(b)make state owned firms more
efficient(c) encourage the flow of foreign capital (d)enable state owned
firm pay tax
27. The transfer of authority by a superior officer to his subordinate
in an organization is(a)controlling (b)directing (c)
decentralization(d)delegation
28. Which of the following is performed by the export promotion
council(a) prevention of importation of harmful goods(b) provision of
credit facilities to exporters(c) creation of export free zone(d) provision
of technical advice to exporters
29. Activities undertaken to create awareness of a product by giving
out samples or gifts is (a) marketing mix (b)window display(c)sales
promotion (d) marketing concept
30. The purchase and sales of goods over electronic system is
called(a)E transfer (b)E Payment (c)E commerce (d)Email
SECTION B
Answer four questions in this section.
1(a) Define business law
(b) Explain in detail ,the branches of commercial law
2(a) What is a contract
(b) List and explain four ways by which a contract may be discharged.
3(a)What do you understand by the word Agency
(b) Briefly, explain five types of agent
4(a)Differentiate between an agent and a principal
(b)State three rights of a principal
(c) How can an agency be terminated
5(a)Define Hire purchase
(b)Who are the parties to a contract
(c)Write out four features of hire purchase
6(a)What is a deferred payment?
(b)In a tabular form ,state the difference between hire purchase and
deferred payment
